Luk Fook Holdings (International) Valuation
Is 590 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
6/6Valuation Score 6/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of 590 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 590 (HK$15.2) is trading below our estimate of fair value (HK$57.97)
Significantly Below Fair Value: 590 is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 590?
Key metric: As 590 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is 590's PE Ratio? | |
|---|---|
| PE Ratio | 5x |
| Earnings | HK$1.77b |
| Market Cap | HK$8.92b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.6x |
| Enterprise Value/EBITDA | 4.4x |
| PEG Ratio | 2.5x |
Price to Earnings Ratio vs Peers
How does 590's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 10.1x | ||
178 Sa Sa International Holdings | 13.8x | 4.1% | HK$2.0b |
398 Oriental Watch Holdings | 7.9x | n/a | HK$1.8b |
1929 Chow Tai Fook Jewellery Group | 10.9x | 7.3% | HK$70.6b |
2101 Fulu Holdings | 8.1x | n/a | HK$792.8m |
590 Luk Fook Holdings (International) | 5x | 2.0% | HK$8.9b |
Price-To-Earnings vs Peers: 590 is good value based on its Price-To-Earnings Ratio (5x) compared to the peer average (10.1x).
Price to Earnings Ratio vs Industry
How does 590's PE Ratio compare vs other companies in the HK Specialty Retail Industry?
| 1 Company | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
84 Stelux Holdings International | 0.2x | n/a | US$9.73m |
| 1 Company | Estimated Growth | Market Cap |
|---|
Price-To-Earnings vs Industry: 590 is good value based on its Price-To-Earnings Ratio (5x) compared to the Hong Kong Specialty Retail industry average (8.6x).
Price to Earnings Ratio vs Fair Ratio
What is 590's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 5x |
| Fair PE Ratio | 7.4x |
Price-To-Earnings vs Fair Ratio: 590 is good value based on its Price-To-Earnings Ratio (5x) compared to the estimated Fair Price-To-Earnings Ratio (7.4x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | HK$15.20 | HK$19.92 +31.0% | 13.0% | HK$24.30 | HK$16.90 | n/a | 9 |
| Nov ’25 | HK$15.00 | HK$19.92 +32.8% | 13.0% | HK$24.30 | HK$16.90 | n/a | 9 |
| Oct ’25 | HK$16.74 | HK$21.88 +30.7% | 11.9% | HK$27.18 | HK$18.00 | n/a | 9 |
| Sep ’25 | HK$14.46 | HK$21.88 +51.3% | 11.9% | HK$27.18 | HK$18.00 | n/a | 9 |
| Aug ’25 | HK$15.18 | HK$22.36 +47.3% | 10.5% | HK$27.18 | HK$19.40 | n/a | 8 |
| Jul ’25 | HK$16.62 | HK$24.33 +46.4% | 18.9% | HK$34.82 | HK$19.55 | n/a | 9 |
| Jun ’25 | HK$19.16 | HK$27.45 +43.3% | 15.3% | HK$34.82 | HK$21.86 | n/a | 9 |
| May ’25 | HK$18.80 | HK$27.45 +46.0% | 15.3% | HK$34.82 | HK$21.86 | n/a | 9 |
| Apr ’25 | HK$21.45 | HK$27.85 +29.8% | 14.4% | HK$34.82 | HK$21.90 | n/a | 9 |
| Mar ’25 | HK$21.00 | HK$27.85 +32.6% | 14.4% | HK$34.82 | HK$21.90 | n/a | 9 |
| Feb ’25 | HK$19.70 | HK$27.85 +41.4% | 14.4% | HK$34.82 | HK$21.90 | n/a | 9 |
| Jan ’25 | HK$20.95 | HK$27.85 +32.9% | 14.4% | HK$34.82 | HK$21.90 | n/a | 9 |
| Dec ’24 | HK$21.90 | HK$26.65 +21.7% | 12.9% | HK$32.00 | HK$21.90 | n/a | 8 |
| Nov ’24 | HK$19.34 | HK$25.91 +34.0% | 14.0% | HK$31.60 | HK$20.40 | HK$15.00 | 8 |
| Oct ’24 | HK$20.30 | HK$26.52 +30.6% | 14.3% | HK$31.60 | HK$20.40 | HK$16.74 | 8 |
| Sep ’24 | n/a | HK$26.07 0% | 12.8% | HK$31.00 | HK$20.40 | HK$14.46 | 8 |
| Aug ’24 | n/a | HK$27.39 0% | 15.0% | HK$34.82 | HK$20.40 | HK$15.18 | 10 |
| Jul ’24 | n/a | HK$28.61 0% | 13.2% | HK$34.82 | HK$20.40 | HK$16.62 | 9 |
| Jun ’24 | n/a | HK$29.07 0% | 14.8% | HK$34.82 | HK$18.90 | HK$19.16 | 10 |
| May ’24 | n/a | HK$29.07 0% | 14.8% | HK$34.82 | HK$18.90 | HK$18.80 | 10 |
| Apr ’24 | n/a | HK$28.05 0% | 15.3% | HK$34.82 | HK$18.90 | HK$21.45 | 10 |
| Mar ’24 | n/a | HK$27.96 0% | 14.8% | HK$34.82 | HK$18.90 | HK$21.00 | 11 |
| Feb ’24 | n/a | HK$27.96 0% | 14.8% | HK$34.82 | HK$18.90 | HK$19.70 | 11 |
| Jan ’24 | n/a | HK$24.52 0% | 16.6% | HK$30.08 | HK$18.90 | HK$20.95 | 11 |
| Dec ’23 | n/a | HK$24.52 0% | 16.6% | HK$30.08 | HK$18.90 | HK$21.90 | 11 |
| Nov ’23 | n/a | HK$25.90 0% | 14.3% | HK$30.10 | HK$19.75 | HK$19.34 | 11 |
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
Discover undervalued companies
Topsports International Holdings
HK$14.3b
An investment holding company, engages in the trading of sportswear products in the People’s Republic of China.
6110
HK$2.30
7D
-6.9%
1Y
-65.1%
Baozun
US$139.9m
Through its subsidiaries, provides end-to-end e-commerce solutions to brand partners in the People's Republic of China.
9991
US$6.22
7D
-3.6%
1Y
-18.8%
Alibaba Group Holding
US$189.0b
Through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally.
89988
US$76.35
7D
-5.2%
1Y
9.3%